Vanguard Green Investment Ltd 10-Q for FY2022 Q2
Vanguard Green Investment Ltd (VGES)
About this 10-Q
Vanguard Green Investment Ltd filed this 10-Q on March 17, 2022, covering the quarter ended January 31, 2022 (FY2022 Q2).
Headline figures
Quarter ended January 31, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Revenue
- $38.19K
- up 97.1% from $19.38K a year earlier
- Net loss
- $71.53K
- compared with a net loss of $141.17K a year earlier
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
OF THE SECURITIES EXCHANGE ACT OF 1934
For
The Quarterly Period Ended
or
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______________ to _______________
Commission
File Number
(Exact name of registrant issuer as specified in its charter)
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
(Address of principal executive offices, including zip code)
Registrant’s
phone number, including area code
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
☒ NO ☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding twelve months (or shorter period that the registrant was required to submit and post such files).
YES ☐ ☒
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large
Accelerated Filer ☐ Accelerated Filer ☐
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes
☐
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
| The OTC Market – Pink Sheets |
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has fled all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.
Yes
☐
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
| Class | Outstanding at January 31, 2022 | |
| Common Stock, $.0001 par value |
TABLE OF CONTENTS
| 2 |
PART I FINANCIAL INFORMATION
ITEM 1. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS:
MU GLOBAL HOLDING LIMITED
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| F-1 |
MU GLOBAL HOLDING LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF JANUARY 31, 2022 AND JULY 31, 2021
(Currency expressed in United States Dollars (“US$”), except for number of shares)
As of January 31, 2022 | As of July 31, 2021 | |||||||
| Unaudited | Audited | |||||||
| ASSETS | ||||||||
| NON-CURRENT ASSETS | ||||||||
| Property, plant and equipment | $ | $ | ||||||
| Leased asset- Right of use | - | |||||||
| Total non current assets, excluding intangible assets | ||||||||
| INTANGIBLE ASSET | ||||||||
| Patent and Trademark | $ | $ | ||||||
| NON-CURRENT ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Prepayments and deposits | ||||||||
| Amount due from related parties | ||||||||
| Inventories | ||||||||
| Leased asset- Right of use | - | |||||||
| Total Current Assets | $ | $ | ||||||
| TOTAL ASSETS | ||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| NON-CURRENT LIABILITIES | ||||||||
| Leased liabilities | $ | $ | ||||||
| Loan from related party | ||||||||
| Loan from Director | ||||||||
| Loan from third party | ||||||||
| Total Non-Current Liabilities | ||||||||
| CURRENT LIABILITIES | ||||||||
| Loan from director | $ | $ | ||||||
| Leased liabilities | ||||||||
| Other payables and accrued liabilities | ||||||||
| Amount due to related parties | ||||||||
| Deposit from franchisee | ||||||||
| Deposit from customers | ||||||||
| Total Current Liabilities | $ | $ | ||||||
| TOTAL LIABILITIES | $ | $ | ||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Preferred stock, $ par value; shares authorized; issued and outstanding | - | |||||||
| Common Shares, par value $; shares authorized, shares issued and outstanding as of January 31, 2022 and July 31, 2021 | $ | $ | ||||||
| Additional paid in capital | ||||||||
| Foreign currency adjustment | ||||||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY | $ | ( | ) | $ | ( | ) | ||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | $ | ||||||
See accompanying notes to condensed consolidated financial statements.
| F-2 |
MU GLOBAL HOLDING LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSSES
FOR THE THREE AND SIX MONTHS ENDED JANUARY 31, 2022 and JANUARY 31 2021
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(Unaudited)
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
Three Months Ended January 31, | Six Months Ended January 31, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| REVENUE | $ | $ | $ | $ | ||||||||||||
| COST OF REVENUE | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| GROSS PROFIT | $ | $ | $ | $ | ||||||||||||
| OTHER INCOME | ||||||||||||||||
| SELLING AND MARKETING EXPENSES | ( | ) | - | ( | ) | - | ||||||||||
| GENERAL AND ADMINISTRATIVE EXPENSES | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| LOSS BEFORE INCOME TAX | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| INCOME TAX PROVISION | - | - | - | - | ||||||||||||
| NET LOSS | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Other comprehensive income/(expense): | ||||||||||||||||
| - Foreign currency translation gain/(loss) | ( | ) | ( | ) | ( | ) | ||||||||||
| TOTAL COMPREHENSIVE LOSS | $ | ( | ) | $ | ( | ) | $ | ( | ) | ( | ) | |||||
| Net loss per share- Basic and diluted | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Weighted average number of common shares outstanding - Basic and diluted | ||||||||||||||||
See accompanying notes to condensed consolidated financial statements.
| F-3 |
MU GLOBAL HOLDING LIMITED.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE SIX MONTHS ENDED JANUARY 31, 2022 AND JANUARY 31, 2021
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(Unaudited)
| Six months ended 31 January 2022 (Unaudited) | ||||||||||||||||||||||||
| COMMON SHARES | ADDITIONAL | Accumulate Others | ||||||||||||||||||||||
| Number of Shares | Amount | Paid-In Capital |
Comprehensive Loss | Accumulated Deficit | Total Equity | |||||||||||||||||||
| Balance as of August 1, 2021 | $ | $ | $ | $ | ( | ) | $ | ( | ) | |||||||||||||||
| Net loss for the period | - | - | - | - | ( | ) | ( | ) | ||||||||||||||||
| Foreign currency translation adjustment | - | - | - | ( | ) | - | ( | ) | ||||||||||||||||
| Balance as of October 31, 2021 | $ | $ | $ | $ | ( | ) | $ | ( | ) | |||||||||||||||
| Net loss for the period | - | - | - | - | ( | ) | ( | ) | ||||||||||||||||
| Foreign currency translation adjustment | - | - | - | ( | ) | - | ( | ) | ||||||||||||||||
| Balance as of January 31, 2022 | $ | $ | $ | $ | ( | ) | $ | ( | ) | |||||||||||||||
| Six months ended 31 January 2021 (Unaudited) | ||||||||||||||||||||||||
| COMMON SHARES | ADDITIONAL | Accumulate Others | ||||||||||||||||||||||
| Number of Shares | Amount | Paid-In Capital |
Comprehensive Loss | Accumulated Deficit | Total Equity | |||||||||||||||||||
| Balance as of August 1, 2020 | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||
| Net loss for the period | - | - | - | - | ( | ) | ( | ) | ||||||||||||||||
| Foreign currency translation adjustment | - | - | - | - | ||||||||||||||||||||
| Balance as of October 31, 2020 | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||
| Balance | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||
| Net loss for the period | - | - | - | - | ( | ) | ( | ) | ||||||||||||||||
| Foreign currency translation adjustment | - | - | - | ( | ) | - | ( | ) | ||||||||||||||||
| Balance as of January 31, 2021 | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||||||||||
| Balance | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||||||||||
See accompanying notes to condensed consolidated financial statements.
| F-4 |
MU GLOBAL HOLDING LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JANUARY 31, 2022 and JANUARY 31, 2021
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(Unaudited)
| Six Months Ended January 31 | ||||||||
| 2022 | 2021 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | ( | ) | $ | ( | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | ||||||||
| Asset Write-off | - | |||||||
| Impairment | - | |||||||
| Reversal on Termination of Leased Asset | - | ( | ) | |||||
| Gain on Disposal | ( | ) | ( | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Other receivables | - | |||||||
| Deposit & Prepayment | ||||||||
| Other payables and accrued liabilities | ( | ) | ( | ) | ||||
| Inventory | ||||||||
| Amount due to related party | - | |||||||
| Amount due from related party | ( | ) | ( | ) | ||||
| Leased liabilities | ( | ) | ( | ) | ||||
| Deposit from customer | - | |||||||
| Deposit from franchisee | ( | ) | ( | ) | ||||
| Net cash used in operating activities | $ | ( | ) | $ | ( | ) | ||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Purchase of trademark | $ | ( | ) | $ | ||||
| Purchase of property, plant and equipment | - | - | ||||||
| Proceed on disposal | ||||||||
| Net cash used in investing activities | $ | $ | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Loan from director | $ | |||||||
| Loan from related party | ( | ) | ||||||
| Loan from third party | ( | ) | - | |||||
| Net cash provided by financing activities | $ | ( | ) | $ | ||||
| Effect of exchange rate changes on cash and cash equivalents | ( | ) | ( | ) | ||||
| Net change in cash and cash equivalents | ||||||||
| Cash and cash equivalents, beginning of period | ||||||||
| CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | $ | ||||||
| SUPPLEMENTAL CASH FLOWS INFORMATION | ||||||||
| Income taxes paid | $ | $ | ||||||
| Interest paid | $ | $ | ||||||
See accompanying notes to condensed consolidated financial statements.
| F-5 |
MU GLOBAL HOLDING LIMITED
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
1. DESCRIPTION OF BUSINESS AND ORGANIZATION
MU Global Holding Limited is organized as a Nevada limited liability company, incorporated on June 4, 2018. For purposes of consolidated financial statement presentation, MU Global Holding Limited and its subsidiary are herein referred to as “the Company” or “we”. The Company business of which planned principal operations are to provide wellness and beauty services to customers via Company owned outlets, franchised outlets or distribution of our product to third party wellness and beauty salon.
On
June 29, 2018, the Company acquired
Details of the Company’s subsidiary:
SCHEDULE OF COMPANY'S SUBSIDIARY
| Company name | Place and date of incorporation | Particulars of issued capital | Principal activities | ||||
| 1. | MU Worldwide Group Limited | ||||||
| 2. | MU Global Holding Limited | ||||||
| 3. | MU Global Health Management |
| F-6 |
MU GLOBAL HOLDING LIMITED
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
The accompanying unaudited condensed consolidated financial statements as of and for the three months ended January 31, 2022, and 2021, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) that permit reduced disclosure for interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the period ended January 31, 2022, are not necessarily indicative of the results that may be expected for the quarter ending October 31, 2021. The Condensed Consolidated Balance Sheet information as of January 31, 2022, was derived from the Company’s audited Consolidated Financial Statements as of and for the quarter ended October 31, 2021, included in the Company’s Quarter Report on Form 10-Q filed with the SEC on December 14, 2021. These financial statements should be read in conjunction with that report.
Basis of consolidation
The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company accounts and transactions have been eliminated upon consolidation.
Use of estimates
Management uses estimates and assumptions in preparing these financial statements in accordance with US GAAP. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities in the balance sheets, and the reported revenue and expenses during the periods reported. Actual results may differ from these estimates.
Revenue recognition
The Company follows the guidance of Accounting Standards Codification (ASC) 606, Revenue from Contracts. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients.
Revenue is measured at the fair value of the consideration received or receivable, net of discounts and taxes applicable to the revenue. The Company derives its revenue from provision of wellness and beauty services to customers via Company owned outlets, franchised outlets or distribution of our product to third party wellness and beauty salon.
Cost of revenue
Cost of revenue includes the cost of services and product incurred to provide wellness and beauty services and purchase of products.
Cash and cash equivalents
Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments.
Property, Plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational:
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT ESTIMATED LIFE
| Categories | Estimated useful life | |
| Leasable equipment | ||
| Computer hardware and software | ||
| Office equipment |
Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of plant and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the statement of operations.
| F-7 |
MU GLOBAL HOLDING LIMITED
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
Inventories
Inventories consisting of products available for sell, are stated at the lower of cost or market value. Cost of inventory is determined using the first-in, first-out (FIFO) method. Inventory reserve is recorded to write down the cost of inventory to the estimated market value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Company takes ownership, risks and rewards of the products purchased. Write downs are recorded in cost of revenues in the Consolidated Statements of Operations and Comprehensive Loss.
Income taxes
Income taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC Topic 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
ASC
740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements
uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740,
The Company conducts major businesses in China and is subject to tax in this jurisdiction. As a result of its business activities, the Company will file tax returns that are subject to examination by the foreign tax authority.
Going Concern
The
accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement
of liabilities and commitments in the normal course of business. As reflected in the accompanying financial statements, for the period
ended January 31, 2022, the Company incurred a net loss of $
The Company’s ability to continue as a going concern is dependent upon improving its profitability and the continuing financial support from its shareholders. Management believes the existing shareholders or external financing will provide the additional cash to meet the Company’s obligations as they become due. No assurance can be given that any future financing, if needed, will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, if needed, it may contain undue restrictions on its operations, in the case of debt financing, or cause substantial dilution for its stock holders, in the case of equity financing.
| F-8 |
MU GLOBAL HOLDING LIMITED
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
The Company calculates net loss per share in accordance with ASC Topic 260 “Earnings Per Share”. Basic loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive.
Foreign currencies translation
Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the Consolidated Statements of Operations and Comprehensive loss.
The functional currency of the parent Company is United States dollar and the functional currency of the subsidiaries MU Worldwide Group Limited (Seychelle) and MU Global Holding Limited (Hong Kong) is United States dollar. MU Global Health Management (Shanghai) Limited is in Renminbi.
The reporting currency of the Company and its subsidiary is United States Dollars (“US$”) and the accompanying financial statements have been expressed in US$.
In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiary are recorded as a separate component of accumulated other comprehensive loss within the statements of stockholders’ equity.
Translation of amounts from RMB and HK$ into US$1 has been made at the following exchange rates for the respective periods:
SCHEDULE OF FOREIGN EXCHANGE RATES TRANSLATION
| As of and for the six months ended January 31 | ||||||||
| 2022 | 2021 | |||||||
| Period-end RMB : US$1 exchange rate | ||||||||
| Period-average RMB : US$1 exchange rate | ||||||||
| Period-end HKD$ : US$1 exchange rate | ||||||||
| Period-average HKD$ : US$1 exchange rate | ||||||||
| Foreign currency exchange rate, translation | ||||||||
Related parties
Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence.
| F-9 |
MU GLOBAL HOLDING LIMITED
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
Fair value of financial instruments:
The carrying value of the Company’s financial instruments: cash and cash equivalents, account receivables, amount due to a director, and accounts payable and approximate at their fair values because of the short-term nature of these financial instruments.
The Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:
Level 1: Observable inputs such as quoted prices in active markets;
Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
Recent accounting pronouncements
The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.
| F-10 |
MU GLOBAL HOLDING LIMITED
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
3. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment as of January 31, 2022 and July 31, 2021 are summarized below:
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT
As of January 31, 2022 (Unaudited) | As of July 31, 2021 (Audited) | |||||||
| Computer hardware and software | $ | $ | ||||||
| Outlet equipment | ||||||||
| Leasable equipment1 | ||||||||
| Outlet Design Fee and Equipment | ||||||||
| App Development Fee | ||||||||
| Total | ||||||||
| Accumulated depreciation2 | $ | ( | ) | $ | ( | ) | ||
| Foreign currency translation adjustment | ||||||||
| Property, plant and equipment, net | $ | $ | ||||||
| 1 |
| 2 |
DISPOSAL OF PROPERTY, PLANT AND EQUIPMENT
SCHEDULE OF DISPOSAL OF PROPERTY, PLANT AND EQUIPMENT
As of January 31, 2022 (Unaudited) | As of July 31, 2021 (Audited) | |||||||
| Proceed from disposal of property, plant and equipment | $ | $ | ||||||
| Disposal of equipment at cost | ( | ) | ( | ) | ||||
| Accumulated depreciation | ||||||||
| Total gain on disposal | $ | $ | ||||||
4. LEASE
The Company officially adopted ASC 842 for the period on and after November 1, 2019 as permitted by ASU 2016-02. ASC 842 originally required all entities to use a “modified retrospective” transition approach that is intended to maximize comparability and be less complex than a full retrospective approach. On July 30, 2018, the FASB issued ASU 2018-11 to provide entities with relief from the costs of implementing certain aspects of the new leasing standard, ASU 2016-02 of which permits entities may elect not to recast the comparative periods presented when transitioning to ASC 842. As permitted by ASU 2018-11, the Company elect not to recast comparative periods, thusly.
As
of November 1, 2020, the Company recognized approximately US$
A single lease cost is recognized over the lease term on a generally straight-line basis. All cash payments of operating lease cost are classified within operating activities in the statement of cash flows.
| F-11 |
The initial recognition of operating lease right and lease liability as follow:
SCHEDULE OF RECOGNITION OF OPERATING LEASE RIGHT AND LEASE LIABILITY
| Gross lease payable | $ | |||
| Less: imputed interest | ( | ) | ||
| Initial recognition as of November 6, 2021 | $ |
As of January 31, 2022, the operating lease right of use asset as follow:
SCHEDULE OF OPERATING LEASE RIGHT OF USE ASSET
| Initial recognition as of November 6, 2021 | $ | |||
| Add: New Lease | ||||
| Less: Termination of lease | ( | ) | ||
| Balance | ||||
| Effect of translation exchange | ||||
| Accumulated amortization | ( | ) | ||
| Balance as of January 31, 2022 | $ |
As of January 31, 2022, the operating lease liability as follow:
SCHEDULE OF OPERATING LEASE LIABILITY
| Initial recognition as of November 1, 2020 | $ | |||
| Add: New operating lease liability | ||||
| Less: Termination of lease | ( | ) | ||
| Effect of translation exchange | ||||
| Less: gross repayment | ( | ) | ||
| Add: imputed interest | ||||
| Balance as of January 31, 2022 | ||||
| Less: lease liability, current | ( | ) | ||
| Lease liability, non-current | $ |
For
the six months ended January 31, 2022, the amortization of the operating lease right of use asset was $
Maturities of operating lease obligation as follow:
SCHEDULE OF MATURITIES OF OPERATING LEASE OBLIGATION
| Year ending | ||||
| July 31, 2022 (6 months) | $ | |||
| Oct 31, 2022 (3 months) | ||||
| Total | $ |
Other information:
SCHEDULE OF OTHER INFORMATION
| Six months ended | Six months ended | |||||||
| January 31, 2022 | January 31, 2021 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
| Operating cash flow from operating lease | $ | $ | ||||||
| Right-of-use assets obtained in exchange for operating lease liabilities | $ | $ | ||||||
| Remaining lease term for operating lease (years) | ||||||||
| Weighted average discount rate for operating lease | % | % | ||||||
Lease
expenses were $
| F-12 |
MU GLOBAL HOLDING LIMITED
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
5. PATENT AND TRADEMARK
SCHEDULE OF PATENT AND TRADEMARK
| As of | As of | |||||||
| January 31, 2022 | July 31, 2021 | |||||||
| (Unaudited) | (Audited) | |||||||
| Patent and Trademark1 | $ | $ | ||||||
| Accumulated amortization | ( | ) | ( | ) | ||||
| Impairment | ( | ) | ||||||
| Foreign currency translation adjustment | ( | ) | ( | ) | ||||
| Patent and Trademark, net | $ | $ | ||||||
| 1 | The
patents and trademarks are held under the Company’s subsidiaries in Hong Kong and Shanghai, China. Amortization trademark for
during the three and six months ended January 31, 2022 was $ |
6. PREPAYMENTS AND DEPOSITS
Prepayments and deposits consisted of the following at January 31, 2022 and July 31, 2021:
SCHEDULE OF PREPAYMENTS AND DEPOSITS
As of January 31, 2022 (Unaudited) | As of
July 31, 2021 (Audited) | |||||||
| Deposits | $ | $ | ||||||
| Prepayment | ||||||||
| Total prepayment and deposits | $ | $ | ||||||
7. DUE FROM RELATED PARTY
SCHEDULE OF DUE FROM RELATED PARTY
As of January 31, 2022 (Unaudited) | As of July 31, 2021 (Audited) | |||||||
| Tien Mu International Co., Ltd1 | $ | $ | ||||||
| Total | $ | $ | ||||||
| 1 |
| F-13 |
MU GLOBAL HOLDING LIMITED
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
8. INVENTORIES
SCHEDULE OF INVENTORIES
| As of | As of | |||||||
| January 31, 2022 (Unaudited) | July 31, 2021 (Audited) | |||||||
| Finished goods, at cost | $ | $ | ||||||
| Total inventories | $ | $ | ||||||
9. OTHER PAYABLES AND ACCRUED LIABILITIES
Other payables and accrued liabilities consisted of the following at January 31, 2022 and July 31, 2021:
SCHEDULE OF OTHER PAYABLES AND ACCRUED LIABILITIES
As of January 31, 2022 (Unaudited) | As of July 31, 2021 (Audited) | |||||||
| Other payable and accrued liabilities | $ | $ | ||||||
| Accrued audit fees | ||||||||
| Accrued professional fees | ||||||||
| Total payables and accrued liabilities | $ | $ | ||||||
| F-14 |
MU GLOBAL HOLDING LIMITED
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
10. DUE TO RELATED PARTIES
SCHEDULE OF DUE TO RELATED PARTIES
As of January 31, 2022 (Unaudited) | As of (Audited) | |||||||
| Wu, Chun-Teh1 | $ | $ | ||||||
| Hsieh, Chang-Chung2 | ||||||||
| Total amounts due to related parties | $ | $ | ||||||
As
of January 31, 2022, the balance $
| 1 |
| 2 |
The amounts due to related parties are unsecured, interest-free with no fixed repayment term, for working capital purpose.
11. LOAN FROM RELATED PARTY
SCHEDULE OF LOAN FROM RELATED PARTY
| As of January 31, 2022 | As of July 31, 2021 | |||||||
| (Unaudited) | (Audited) | |||||||
| Hong Ting Network Technology (Xiamen) Limited1 | $ | $ | ||||||
| Total loan from related party | $ | $ | ||||||
| 1 |
12. LOAN FROM THIRD PARTY
SCHEDULE OF LOAN FROM THIRD PARTY
As of January 31, 2022 | As of July 31, 2021 | |||||||
| (Unaudited) | (Audited) | |||||||
| Shang Hai Shi Ba Enterprise Management Centre | $ | $ | ||||||
| Total loan from third party | $ | $ | ||||||
The loan is unsecured, interest-free and repayable on July 22, 2023.
13. LOAN FROM DIRECTOR
SCHEDULE OF LOAN FROM DIRECTOR
As of January 31, 2022 | As of July 31, 2021 | |||||||
| (Unaudited) | (Audited) | |||||||
| Current | $ | $ | ||||||
| Non-current | ||||||||
| Total loan from Director | $ | $ | ||||||
The short-term loan provided by director is unsecured, interest-free with repayable in one to two years, for working capital purpose.
The long-term loan provided by director is unsecured, interest-free and repayable on year 2023 and year 2024.
| F-15 |
MU GLOBAL HOLDING LIMITED
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
14. INCOME TAXES
For the Six Months Ended January 31, 2021, the local (United States) and foreign components of income/ (loss) before income taxes were comprised of the following:
SCHEDULE OF LOSS BEFORE INCOME TAX
Six Months Ended January 31, | ||||||||
| 2022 | 2021 | |||||||
| Tax jurisdictions from: | ||||||||
| Local | $ | ( | ) | $ | ( | ) | ||
| Foreign, representing | ||||||||
| - Seychelles | ||||||||
| - Hong Kong | ( | ) | ( | ) | ||||
| - Shanghai | ( | ) | ( | ) | ||||
| Loss before income tax | $ | ( | ) | $ | ( | ) | ||
The provision for income taxes consisted of the following:
SCHEDULE OF PROVISION FOR INCOME TAXES
For the period ended January 31, 2022 | For the period ended January 31, 2021 | |||||||
| Current: | ||||||||
| - Local | $ | - | $ | - | ||||
| - Foreign | - | - | ||||||
| Deferred: | ||||||||
| - Local | - | - | ||||||
| - Foreign | - | - | ||||||
| Income tax expense | $ | $ | ||||||
The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. The Company has subsidiaries that operate in various countries: United States Seychelles, Hong Kong and Shanghai, PRC that are subject to taxes in the jurisdictions in which they operate, as follows:
United States of America
The
Company is registered in the State of Nevada and is subject to the tax laws of the United States of America. As of January 31, 2022,
the operations in the United States of America incurred $
Seychelles
Under the current laws of the Seychelles, MU Worldwide Group Limited is registered as an international business company which governs by the International Business Companies Act of Seychelles and there is no income tax charged in Seychelles.
Hong Kong
MU
Global Holding Limited is subject to Hong Kong Profits Tax, which is charged at the statutory income tax rate of
Shanghai
MU
Global Health Management (Shanghai) Limited are operating in the People’s Republic of China (PRC) subject to the Corporate Income
Tax governed by the Income Tax Law of the PRC with a unified statutory income tax rate of
| F-16 |
MU GLOBAL HOLDING LIMITED
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
15. COMMON STOCK
On
June 4, 2018, our Chief Executive Officer, Ms. Niu Yen-Yen subscribed shares of restricted common stock of the Company at par
value of $ per share. The monies from this transaction, which totalled $
On
July 6, 2018, Ms. Niu Yen-Yen and Server Int’l Co., Ltd. subscribed and restricted shares of common stock,
respectively, of the Company, at par value of $ per share. The monies from these transactions, which totalled $
On
July 7, 2018, Chang Chun-Ying and Chang Su-Fen subscribed and restricted shares of common stock, respectively, of
the Company, at par value of $ per share. The monies from these transactions, which totalled $
On
July 9, 2018, GreenPro Asia Strategic SPC and GreenPro Venture Capital Limited, subscribed and restricted shares
of common stock of the Company, respectively, at par value of $ per share. The monies from these transactions, which totalled $
From
July 9, 2018 to July 10, 2018 the Company issued a total of shares of restricted common stock to three non-US residents. Shares
were sold at par value, $ per share. Total proceeds from these shares totalled $
On
July 11, 2018 the Company issued a total of shares of restricted common stock to two non-US residents at a price of $ per
share. Total proceeds from these sales of shares totalled $
On
July 25, 2018 the Company issued a total of shares of restricted common stock to ten non-US residents at a price of $ per
share. Total proceeds from these sales of shares totalled $
On
July 26, 2018 the Company issued shares of restricted common stock to one non-US resident at a price of $ per share. Total
proceeds from these sales of shares totalled $
On
July 31, 2018 Dezign Format Pte Ltd and Cheng Young-Chien each subscribed restricted shares of common stock of the Company,
at $ per share, for total consideration of $
On July 10, 2018, Server Int’l Co., Ltd, a Company solely controlled and owned by the CEO has transferred shares of common stock to 8 non-US residents.
From August 1, 2018 to December 13, 2018, Ms. Niu Yen-Yen, the CEO of the Company has transferred shares of common stock to 16 non-US residents.
On
May 7, 2019, the convertible promissory note issued by the Company amounted $
From May 14, 2019 to July 31, 2019, the company issued shares of common stock at a price of $ per share through the Initial Public Offering (IPO) to 36 non-US residents.
As of January 31, 2022, MU Global Holding Limited has an issued and outstanding common share of .
| F-17 |
MU GLOBAL HOLDING LIMITED
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
16. CONCENTRATIONS OF RISK
Exchange rate risk
The Company cannot guarantee that the current exchange rate will remain stable, therefore there is a possibility that the Company could post the same amount of income for two comparable periods and because of the fluctuating exchange rate actually post higher or lower income depending on exchange rate of RMB converted into US$ on that date. The exchange rate could fluctuate depending on changes in political and economic environments without notice.
17. COMMITMENTS AND CONTINGENCIES
As of January 31, 2022, the Company has the aggregate minimal rent payments due in the current year and next years as follows:
SCHEDULE OF AGGREGATE MINIMAL RENT PAYMENTS
| Year ending July, 31 | ||||
| 2022 | $ | |||
| 2023 | $ | |||
| Total | $ |
18. RELATED PARTY TRANSACTIONS
For the period ended January 31, 2022 the Company has following transactions with related parties:
SCHEDULE OF OUTSTANDING PAYABLE TO RELATED PARTY
For the period ended January 31, 2022 (Unaudited) | For the year ended July 31, 2021 (Audited) | |||||||
| Professional fee paid: | ||||||||
| - Related party A | $ | $ | ||||||
| Consultation fee paid: | ||||||||
| - Related party B | $ | $ | ||||||
| - Related party C | $ | $ | ||||||
| Total | $ | $ | ||||||
The related party transactions are generally transacted in an arm-length basis at the current market value in the normal course of business.
Related party A is the fellow subsidiaries of a corporate shareholder of the Company.
Related party B and C are the employees of the Company and have provided consultancy service for business operation.
For
the period ended January 31, 2022, the Company incurred professional fees of $
19. SEGMENT INFORMATION
ASC 280, “Segment Reporting” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organization structure as well as information about services categories, business segments and major customers in financial statements. In accordance with the “Segment Reporting” Topic of the ASC, the Company’s chief operating decision maker has been identified as the Chief Executive Officer and President, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Existing guidance, which is based on a management approach to segment reporting, establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products and services, major customers, and the countries in which the entity holds material assets and reports revenue. All material operating units qualify for aggregation under “Segment Reporting” due to their similar customer base and similarities in economic characteristics; nature of products and services; and procurement, manufacturing and distribution processes.
The Company had no inter-segment sales for the periods presented. Summarized financial information concerning the Company’s reportable segments is shown as below:
SCHEDULE OF SEGMENT REPORTING INFORMATION
By Geography:
| Hong Kong | China | Total | ||||||||||
| For the period ended January 31, 2022 | ||||||||||||
| Hong Kong | China | Total | ||||||||||
| Revenues | $ | $ | $ | |||||||||
| Cost of revenues | - | ( | ) | ( | ) | |||||||
| Depreciation and amortization | ||||||||||||
| Net income (loss) | ( | ) |
( | ) | ( | ) | ||||||
| Total assets | $ | $ | $ | |||||||||
| Hong Kong | China | Total | ||||||||||
| For the period ended January 31, 2021 | ||||||||||||
| Hong Kong | China | Total | ||||||||||
| Revenues | $ | $ | $ | |||||||||
| Cost of revenues | - | ( | ) | ( | ) | |||||||
| Depreciation and amortization | ||||||||||||
| Net income (loss) | ( | ) | ( | ) | ( | ) | ||||||
| Total assets | $ | $ | $ | |||||||||
*Revenues and costs are attributed to countries based on the location of customers.
20. SUBSEQUENT EVENTS
In accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued, the Company has evaluated all subsequent events through the filing date of this Form 10-Q with the SEC, to ensure that this filing includes appropriate disclosure of events both recognized in the financial statements as of January 31, 2022, and events which occurred subsequently but were not recognized in the financial statements. During the year, there was no subsequent event that required recognition or disclosure.
21. SIGNIFICANT EVENTS
During the fiscal year, the World Health Organization declared the Coronavirus (COVID-19) outbreak to be a pandemic, which has caused severe global social and economic disruptions and uncertainties, including markets where the Company operates. The consequences brought about by Covid-19 continue to evolve and whilst the Company actively monitoring and managing its operations to respond to these changes, the Company does not consider it practicable to provide any quantitative estimate on the potential impact it may have on the Company.
| F-18 |
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The information contained in this Form 10-Q is intended to update the information contained in our Quarter Report on Form 10-Q for the period ended October 31, 2021 filed with the Securities and Exchange Commission on December 14, 2021 (the “Form 10-Q”) and presumes that readers have access to, and will have read, the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other information contained in such Form 10-Q. The following discussion and analysis also should be read together with our financial statements and the notes to the financial statements included elsewhere in this Form 10-Q.
Certain statements in this Report constitute forward-looking statements. These forward-looking statements include statements, which involve risks and uncertainties, regarding, among other things, (a) our projected sales, profitability, and cash flows, (b) our growth strategy, (c) anticipated trends in our industry, (d) our future financing plans, and (e) our anticipated needs for, and use of, working capital. They are generally identifiable by use of the words “may,” “will,” “should,” “anticipate,” “estimate,” “plan,” “potential,” “project,” “continuing,” “ongoing,” “expects,” “management believes,” “we believe,” “we intend,” or the negative of these words or other variations on these words or comparable terminology. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this filing will in fact occur. You should not place undue reliance on these forward-looking statements.
The forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events.
Company Overview
MU Global Holding Limited, the US Company, operates through its wholly owned subsidiary, MU Worldwide Group Limited, a Seychelles Company; which operates through its wholly owned subsidiary, MU Global Holding Limited, a Hong Kong Company; which operates through its wholly owned subsidiary, MU Global Health Management (Shanghai) Limited, a Shanghai Company. The US, Seychelles and Hong Kong Companies act solely for holding purposes whereas all current and future operations in China are planned to be carried out via MU Global Health Management (Shanghai) Limited, the Shanghai Company. The purpose of the Hong Kong Company is to function as the current regional hub of the Company.
At present, we have a physical office in Shanghai with address of Room 1510, Building 5, Ark Times Square, No. 3148, Chengliu-Chong Road, Jiading District, Shanghai, People Republic of China. In the future, we do not have definitive plans for which markets intend to expand to, but we base our operations in Shanghai, as we prepare for future unidentified expansion efforts.
All of the previous entities share the same exact business plan with the goal of developing and providing wellness and beauty services to our future clients. We aim to promote improved overall health and beauty in our clients through a holistic detoxification method. We will, at least initially, primarily focus our efforts on attracting customers in China. We have intentions, but no definitive plans or timelines, to expand to Singapore, Malaysia, Hong Kong, and Middle Eastern countries in the coming years, and subsequently we intend to make efforts to expand throughout Asia. We anticipate spending a substantial amount in marketing and advertising in the coming year.
| 3 |
Results of Operation
For the Six months ended January 31, 2022 and 2021
Revenues
For the six months ended January 31, 2022 and 2021, the Company has generated revenue of $38,787 and $41,076 respectively. The revenue represented income from wellness and beauty services provided to customers and sales of products via Shanghai outlets and sharing of revenue from leasable equipment with business alliance and franchisee.
Cost of Revenue and Gross Margin
For the six months ended January 31, 2022 and 2021, cost incurred arise in providing wellness and beauty services is $17,396 and $9,556 respectively, and generate a Gross profit the for the six months ended January 31, 2022 and 2021 of $21,391 and $31,520.
Selling and marketing expenses
For the six months ended January 31, 2022 and 2021, we had incurred $579 marketing expenses on January 31, 2022 and we had incurred no marketing expenses on January 31, 2021. These expenses comprised travelling expenses.
General and administrative expenses
For the six months ended January 31, 2022 and 2021, we had incurred general and administrative expenses in the amount of $168,560 on January 31, 2022 and $294,274 on January 31, 2021. These expenses are comprised of salary, allowance, professional fees, consultancy fee for IT and system management, office and outlet operation expenses and depreciation.
Other Income
The Company recorded an amount of $26,933 and $24,987 as other income for the six months ended January 31, 2022 and 2021. This income is derived from the interest income, foreign exchange gain and gain on disposal.
Net Loss
Our net loss for six months ended January 31, 2022 and 2021 were $120,815 and $237,767. The net loss mainly derived from the general and administrative expenses incurred.
| 4 |
Liquidity and Capital Resources
As of January 31, 2022 and 2021, we had cash and cash equivalents of $28,398 and $43,603 respectively. We expect increased levels of operations going forward will result in more significant cash flow and in turn working.
We depend substantially on investing activities to provide us with the liquidity and capital resources we need to meet our working capital requirements and to make capital investments in connection with ongoing operations. During the six months ended January 31, 2022, the Company had met these requirements primarily from the financial support from director and cash flow generated from disposal of assets.
Cash Used In Operating Activities
For the six months ended January 31, 2022 and 2021, net cash used in operating activities was $7,768 and $85,511 respectively. The cash used in operating activities was mainly for the payment of general and administrative expenses.
Cash Provided By Investing Activities
For the six months ended January 31, 2022 and 2021, net cash from investing activities was $29,659 and $12,110 respectively. The investing cash flow performance primarily reflects the cash generated from disposal of assets.
Cash Used In Financing Activities
For the six months ended January 31, 2022, net cash used in financing activities was $13,510 as compared to net cash provided by financing activities of $109,517 for the six months ended January 31, 2021. The net cash used in financing activities primarily reflects loans repayment to the related party. The net cash provided by in financing activities primarily reflects the provision of long-term loan by director and related party.
Credit Facilities
We do not have any credit facilities or other access to bank credit.
Off-balance Sheet Arrangements
We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders as of January 31, 2022.
Recent Accounting Pronouncements
The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
For the three months ended January 31, 2022 and 2021
Revenues
For the three months ended January 31, 2022 and 2021, the Company has generated revenue of $38,194 and $19,381 respectively. The revenue represented income from wellness and beauty services provided to customers and sales of products via Shanghai outlets and sharing of revenue from leasable equipment with business alliance and franchisee.
| 5 |
Cost of Revenue and Gross Margin
For the three months ended January 31, 2022 and 2021, cost incurred arise in providing wellness and beauty services is $17,209 and $7,845 respectively, and generate a Gross profit the for the three months ended January 31, 2022 and 2021 of $20,985 and $11,536.
Selling and marketing expenses
For the three months ended January 31, 2022 and 2021, we had incurred $435 marketing expenses on January 31, 2022 and we had incurred no marketing expenses on January 31, 2021. These expenses comprised travelling expenses.
General and administrative expenses
For the three months ended January 31, 2022 and 2021, we had incurred general and administrative expenses in the amount of $97,462 on January 31, 2022 and $173,023 on January 31, 2021. These expenses are comprised of salary, allowance, professional fees, consultancy fee for IT and system management, office and outlet operation expenses and depreciation.
Other Income
The Company recorded an amount of $5,387 and $20,321 as other income for the three months ended January 31, 2022 and 2021. This income is derived from the interest income, foreign exchange gain and gain on disposal.
Net Loss
Our net loss for three months ended January 31, 2022 and 2021 were $71,525 and $141,166. The net loss mainly derived from the general and administrative expenses incurred.
Credit Facilities
We do not have any credit facilities or other access to bank credit.
Off-balance Sheet Arrangements
We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders as of January 31, 2022.
Recent Accounting Pronouncements
The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
| 6 |
ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item.
ITEM 4 CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures:
We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of January 31, 2022. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer and our Chief Financial Officer. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of April 30, 2019, our disclosure controls and procedures were not effective due to the presence of material weaknesses in internal control over financial reporting.
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis. Management has identified the following weaknesses which have caused management to conclude that, as of January 31, 2022, our disclosure controls and procedures were not effective: (i) inadequate segregation of duties and effective risk assessment; and (ii) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of both US GAAP and SEC guidelines.
Changes in Internal Control over Financial Reporting:
There were no changes in our internal control over financial reporting during the quarter ended January 31, 2022, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
| 7 |
PART II — OTHER INFORMATION
Item 1. Legal Proceedings
We know of no materials, active or pending legal proceedings against us, nor are we involved as a plaintiff in any material proceedings or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any beneficial shareholder are an adverse party or has a material interest adverse to us.
Item 1A. Risk Factors.
We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information.
None
| 8 |
ITEM 6. Exhibits
| Exhibit No. | Description | |
| 31.1 | Rule 13(a)-14(a)/15(d)-14(a) Certification of principal executive officer* | |
| 31.2 | Rule 13(a)-14(a)/15(d)-14(a) Certification of principal financial officer* | |
| 32.1 | Section 1350 Certification of principal executive officer * | |
| 32.2 | Section 1350 Certification of principal financial officer * | |
| 101.INS | Inline XBRL Instance Document* | |
| 101.SCH | Inline XBRL Schema Document* | |
| 101.CAL | Inline XBRL Calculation Linkbase Document* | |
| 101.DEF | Inline XBRL Definition Linkbase Document* | |
| 101.LAB | Inline XBRL Label Linkbase Document* | |
| 101.PRE | Inline XBRL Presentation Linkbase Document* | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
* Filed herewith.
| 9 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| MU Global Holding Limited | ||
| (Name of Registrant) | ||
| Date: March 17, 2022 | By: | /s/ NIU YEN YEN |
| Title: | Chief Executive Officer, President, Director, Secretary and Treasurer | |
| (Principal Executive Officer) | ||
| Date: March 17, 2022 | By: | /s/ HSIEH CHANG CHUNG |
| Title: | Chief Financial Officer, (Principal Financial Officer, Principal Accounting Officer) | |
| 10 |
EXHIBIT 31.1
CERTIFICATION
I, NIU YEN YEN, certify that:
1. I have reviewed this quarterly report on Form 10-Q of MU Global Holding Limited (the “Company”) for the quarter ended January 31, 2022;
2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
| a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
| b. | Designed such internal control over financial reporting, or caused such internal control to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. | |
| c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |
| d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
| a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | |
| b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
| Date: March 17, 2022 | By: | /s/ NIU YEN YEN |
| NIU YEN YEN | ||
|
Chief Executive Officer, President, Director, Secretary, Treasurer | ||
| (Principal Executive Officer) |
EXHIBIT 31.2
CERTIFICATION
I, HSIEH CHANG CHUNG, certify that:
1. I have reviewed this quarterly report on Form 10-Q of MU Global Holding Limited (the “Company”) for the quarter ended January 31, 2022;
2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
| a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
| b. | Designed such internal control over financial reporting, or caused such internal control to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. | |
| c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |
| d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
| a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | |
| b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
| Date: March 17, 2022 | By: | /s/ HSIEH CHANG CHUNG |
| HSIEH CHANG CHUNG | ||
|
Chief Financial Officer, (Principal Financial Officer, Principal Accounting Officer) |
EXHIBIT 32.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of MU Global Holding Limited (the “Company”) on Form 10-Q for the quarter ended January 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), The undersigned hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:
(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
| Date: March 17, 2022 | By: | /s/ NIU YEN YEN |
| NIU YEN YEN | ||
| Chief Executive Officer, President, Director | ||
| (Principal Executive Officer) |
A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.
EXHIBIT 32.2
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of MU Global Holding Limited (the “Company”) on Form 10-Q for the quarter ended January 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), The undersigned hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:
(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
| Date: March 17, 2022 | By: | /s/ HSIEH CHANG CHUNG |
| HSIEH CHANG CHUNG | ||
| Chief Financial Officer | ||
| (Principal Financial Officer, Principal Accounting Officer) |
A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.